TORONTO, ONTARIO — (MARKET WIRE) — 03/26/10 — Manulife Financial has rewarded its chief executive for failure with a $9.3-million compensation package and a gold-plated pension, according to SEIU Capital Stewardship.
The insurance company released its proxy circular on Friday revealing the payout to Donald Guloien for the year to December 31 2009.
Manulife’s shares fell from a high of $40 in 2008 to $20 at end of 2009 – and still languish at that price.
“This pay-out is a slap in the face to shareholders. It is reward for failure,” said a spokesperson for SEIU Capital Stewardship. “After pensioners have seen their investments in Manulife cut in half, a top executive has pocketed a stratospheric bonus.”
The generous compensation package has been awarded to the CEO even though Manulife is facing a class action suit on behalf of investors that alleges the company failed to “utilize effective and appropriate risk management and failed to disclose that failure”.
This resulted in an “inflated” share price that plummeted when the “truth began to emerge”, the suit claims.
Manulife also disclosed in 2009 that it had been notified by the Ontario Securities Commission that it was suspected of having failed in its continuous disclosure duty with regard to the market risks associated with its products.
Contacts: SEIU Capital Stewardship Media Relations 905 695 1203 ext. 226